In the latest twist of the courtroom battle between Macy's, J.C. Penney and Martha Stewart's company, the judge says that J.C. Penney will be allowed for now to sell some Stewart products. Still, Macy's CEO Terry Lundgren said he plans to appeal if his company ultimately loses in court.

The retailer is soft-launching some of its home shops—in-store boutiques for furnishings from designers such as Jonathan Adler and Michael Graves—hoping that they will help spur plummeting sales. The Street will be watching.